ACCT2320 - 2.3 & 2.4

method of separating mixed costs into its fixed and variable components

_ companies buy finished goods from suppliers and resell them to customers

ex: walmart

_ companies purchase raw materials from suppliers and produce and sell finished goods to customers

ex: tesla

on a company's income statement, the cost of inventories SOLD are recorded as _

Income statement of

• merchandising

• manufacturing

Income statement of

• merchandising

• manufacturing

cost of goods that were completed/produced during the period

Inventory is reported on the balance sheet under _

Merchandiser has _ type(s) of inventory

• one

• three

Manufacturing has _ type(s) of inventory

• one

• three